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-Editorial
A heated Calexico City Council meeting on August 21 saw a packed City Hall as residents turned out in force to protest a proposed water fee adjustment. The majority of those who spoke expressed strong opposition to the increase, voicing concerns that it would strain their finances and calling for greater transparency in the decision-making process.
Residents made it clear that the potential impact of the fee hike on their already tight budgets was a primary concern. Many questioned the necessity of the increase and demanded a clearer explanation of how the additional funds would be used. Their frustration was palpable as speaker after speaker urged the council to reconsider the proposal, most of them express their disappointment at how the city is deteriorating due to the city council’s poor decisions.
Council members expressed their reservations about the proposed increase and the lack of information about how the money would be spent.
“The fact that this was submitted during the summer when some of you were on vacation, meant there wasn’t enough time. I propose having workshops to develop a plan for the revenues and expenditures… I want to know where the money is going,” Mayor Pro Tem Javier Moreno said.
On March 7, 2023, the City of Calexico initiated a cost-of-service rate study for its water and wastewater utilities, aiming to recommend adjustments to the rate structure that would fully cover the operational, maintenance, and upgrade costs of these essential services.
Calexico operates a water treatment plant, distribution system, and wastewater collection and treatment facility, serving both the city and surrounding unincorporated areas. In response to neighboring cities raising their water and wastewater rates due to rising costs and stricter California Department of Water Resources regulations, Calexico is taking proactive steps. Public Works Director Liliana Falomir highlighted the urgent need for significant upgrades to the city’s aging infrastructure, some of which date back to the 1940s.
The last comprehensive Water and Sewer Rate and Connection Fee Study was completed in 2018, with annual rate increases implemented through July 1, 2022. To address ongoing needs, Calexico developed a five-year Capital Improvement Program (CIP) that requires funding.
On April 5, 2023, the City Council approved a $61,995 agreement with Willdan Financial Services to conduct the new rate study. Chris Fisher from Willdan presented the proposed rates to the City Council on June 5, 2024, prompting a special meeting scheduled for June 12, 2024.
During a City Council meeting on July 12, 2024, several key actions were taken: the council adopted a plan to modify water and sewer rates over the next five years, authorized the Acting City Manager to initiate the Proposition 218 Notification Process—which requires notifying property owners and tenants of upcoming public hearings regarding proposed rate increases at least 45 days in advance—and scheduled a public hearing to consider the updated rates.
The rate study aimed to determine the cost of service and the necessary revenue to ensure safe and reliable water delivery and effective wastewater treatment. The proposed rates will be based on a proportional cost-of-service model, ensuring that generated revenue is strictly allocated to water and sewer operations, maintenance, and capital projects.
“This update is essential for addressing future infrastructure needs, maintaining environmental standards, and providing reliable services,” Falomir stated in her report. The last rates took effect in FY 2022-2023, and in response to findings from the California State Auditors in October 2022, the city wants to ensure sufficient revenue to cover costs, particularly during shortages, while also considering best practices for conservation pricing in the new study.
Despite the proposed increases, Calexico’s average rates will remain lower than those of surrounding communities, according to the report, thanks to the efficiency of city staff and the robust financial position built within the enterprise funds, Falomir added.
In compliance with Proposition 218, the City was required to hold a public hearing before imposing any new or increased property-related fees. Notices detailing the proposed changes, their basis, and the public hearing date were sent to affected property owners and tenants.
